Key facts
- Volvo Group reported stable customer demand and deliveries in Europe for the second quarter.
- North American demand remains strong, with production gradually increasing.
- Cost inflation is trending upward, while high customer truck and machine utilization supports service activity.
- Volvo's Autonomous Solutions unit aims for driverless on-highway operations by Q1 2027 and $3 billion in sales within five years.
- Volvo raised its European heavy truck market forecast to 310,000 vehicles for the year.
- The company maintained its North American heavy truck sales outlook at 265,000 vehicles.
Truckmaker Volvo Group reported stable customer demand and deliveries in Europe for the second quarter, while demand in North America remains strong with production gradually increasing. The company noted that cost inflation is trending upward, but high utilization of customers' trucks and machines supports service activity.
Volvo predicted that its Trucks and Volvo Construction Equipment units would outperform historical growth rates. The self-driving trucks unit, Autonomous Solutions, aims to have driverless on-highway operations by the first quarter of 2027 and achieve around $3 billion in sales within five years. The engine and power systems unit, Volvo Penta, plans to double sales in the coming years.
In the first quarter, North American truck order intake saw a significant jump of 78%, contributing to a 14% rise in global truck orders to 62,755 vehicles. Volvo raised its forecast for Europe's heavy truck market to 310,000 vehicles from 305,000, while maintaining its North American outlook at 265,000 vehicles. Despite strong order intake, first-quarter operating profit fell 20% year-on-year to 10.7 billion Swedish crowns, below analyst expectations. The company stated that the conflict in the Middle East has not caused any major disruption to its supply chain.